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Data: Investing.com; Chart: Axios Visuals

The dollar rose to its highest level in five weeks against the Japanese yen on Thursday, as currency markets also took their cue from seemingly reduced tensions between the U.S. and China.

The state of play: The yen's value against the dollar has declined along with gold, bond prices, and other safe havens this week as the world's two largest economies look poised to roll back tariffs and de-escalate the trade war.

What they're saying: "[F]or now the latest headlines suggest progress towards a meaningful agreement, which is enough to boost risk appetite," Kathy Lien, managing director of FX strategy at BK Asset Management, says in a note to clients.

What to watch: Lien points out that "the restrained rally" in currencies like the Australian and New Zealand dollars that typically perform well when investors favor risky assets, "reflect the market's cautiousness in this headline driven market."

  • "Barring any fresh news that could cast doubt on progress towards a deal, [the dollar] could extend its gains to 110 [yen per dollar]."

Go deeper:

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Updated 4 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Ex-FDA chief: Pence campaigning after COVID exposure puts others at risk — Mark Meadows: "We are not going to control the pandemic"— COVID-19 looms over White House Halloween celebrations.
  2. Health: 13 states set single-day coronavirus case records last week — Fauci says maybe we should mandate masks if people don't wear themU.S. reports over 80,000 new cases for second consecutive day.
  3. World: Italy tightens restrictions Spain declares new state of emergency.

Amy Coney Barrett's immediate impact

Illustration: Eniola Odetunde/Axios

In her first week on the job, Amy Coney Barrett may be deciding which votes to count in the presidential election. By her third week, she’ll be deciding the fate of the Affordable Care Act.

Where it stands: The Senate votes on Barrett’s nomination tomorrow. If she’s confirmed, Chief Justice John Roberts is expected to swear her in at the Supreme Court within hours, an administration official tells Axios.

Texas Democrats beg Biden to spend now

Photo: Ron Jenkins/Getty Images

The Biden campaign is rebuffing persistent pleas from Texas Democrats to spend at least $10 million in the Lone Star state, several people familiar with the talks tell Axios.

Why it matters: If Texas — which has 38 electoral votes and is steadily getting more blue, but hasn't backed a Democrat for president since 1976 — flipped to the Biden column, it would be game over. But the RealClearPolitics polling average stubbornly hovers at +2.6 for Trump — and Team Biden appears more focused on closer targets.

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